The real estate landscape in Saudi Arabia is undergoing remarkable changes, positioning itself as a major hub for construction and playing a pivotal role in the nation’s economic diversification efforts. A high-ranking official has highlighted these dynamic shifts within the sector.
During his address at the Real Estate Future Forum held in Riyadh, Abdullah Al-Hammad, Chief Executive Officer of Saudi Arabia’s Real Estate General Authority, emphasized the significant developments occurring within the property market. He pointed out that real estate is a fundamental component of the Saudi economy and is making substantial contributions to the nation’s GDP.
At the same forum, Ahmed Al-Rajhi, the Saudi Minister of Human Resources and Social Development, underscored the property sector’s influence on job creation and sectoral progress. He elaborated on the interconnectedness of the industry, stating, “When the real estate sector thrives, construction booms, the supply chain is activated, and professionals, including engineers, find abundant work opportunities.”
Al-Rajhi also noted a shift in focus from merely trading real estate to embracing a more comprehensive approach to property development. The forum’s third installment is set to explore these sectoral shifts, address challenges, and identify potential opportunities.
Under the auspices of Majid bin Abdullah Al-Hogail, Minister of Municipal and Rural Affairs and Housing, this three-day event will feature dialogues pertinent to strategic real estate topics on both a global and local scale.
A report from October 2023 released by Saudi Arabia’s General Authority for Statistics revealed a 0.7 percent year-over-year increase in the national real estate price index for the third quarter, propelled by a rise in residential property values. Residential sector prices saw a 1.1 percent annual uptick, largely due to a 1.2 percent increase in land plot costs.
However, the report also indicated a decrease in prices for certain types of properties. Building and villa prices dropped by 0.9 percent and 3.8 percent, respectively, while house prices slightly declined by 0.1 percent. Apartment prices, on the other hand, remained relatively stable during the same period.